Interesting P.A here on Cable traders!

Absolutely beautiful! For anyone who read our previous report on Cable (http://blog.icmarkets.com/wednesday-7th-october-daily-technical-outlook-and-review/), you may recall us mentioning to watch for a break and (confirmed) retest of 1.5240 yesterday, which, as you can see, played out perfectly! Following the retest, an aggressive round of bids came into the market, pushing price above psychological resistance 1.5300 and into the underside of supply seen at 1.5363-1.5340. Well done to any of our readers who took advantage of this move!

Consequent to the above, price is also now trading at the underside of a daily swap (supply) area at 1.5338-1.5392. Alongside this, however, we mustn’t forget that the weekly timeframe shows trade has recently rebounded from channel support (1.4564) and, as far as we see, still has room to appreciate up to trendline resistance drawn from the high 1.7190.

Therefore, here is two pips’ worth on what we may see from this market today… Given the weekly timeframe indicating further upside is possible; shorts from the current 4hr supply can still be taken, but only for an intraday bounce back down to 1.5300 just to be safe! Ultimately though, we have our eye on the psychological resistance above at 1.5400 for a heavier sell-off. The reasons for why are as follows:

• Swap level history at 1.5400.
• 50% Fibonacci level at 1.5385.
• Converges with the aforementioned weekly trendline.
• Positioned just a few pips above the daily swap (supply) area mentioned above at 1.5338-1.5392.